PACRA Maintains Stability Rating of NBP Aitemaad Mahana Amdani Fund

The objective of the fund is to provide monthly income to investors by investing in Shariah Compliant money market and debt avenues.

The rating incorporates the fund's moderate credit quality and strong liquidity profile emanating from the fund's strategy to invest in good quality shariah compliant instruments. At end Dec-18, ~98% of the fund's net assets were invested as cash with banks. The fund has a diversified unit holding pattern, with top 10 investors representing ~76% of the fund size, of which ~36% are group’s own investments, which exposes the fund to low level of redemption pressure.
Going forward, the fund intends to maintain its exposure in cash. Material changes in the fund's asset allocation strategy, which could negatively impact the fund's credit quality and exposure to interest rate risk, remains critical for the rating.

About the Entity
NBP Fund Management Limited, established in 2005, is licensed by Securities and Exchange Commission (SECP) to carry out asset management and investment advisory business. National Bank of Pakistan is the largest shareholder of the company with a stake of ~54%. During the year, Baltoro Growth Fund acquired the entire (36%) stake of Alexandra Fund Management Pte. Ltd. in the company. Baltoro Capital is a Pakistan focused private equity firm. Baltoro has made three investments in the pharmaceutical, renewable energy and financial services sectors. It is actively deploying its funds in businesses positioned to achieve extraordinary growth. The CEO of NBP Fund Management Limited, Dr. Amjad Waheed, also holds a 10% stake in the company.

The company’s nine-member Board of Directors include three independent directors and the CEO. During the year, there has been some new induction in the Board of Directors. The company is currently managing a diversified fund slate of twenty-six mutual funds and two pension funds.